MONTREAL, QC (WSAU) - The Montreal, Quebec based owner of paper mills, including Rothschild and Nekoosa received a major stock boost Wednesday after news of a rival company planning to shut down a paper mill.
Domtar Corporations' stock jumped 16 percent on the day after competitor International Papers announced they would close an Alabama plant and let go of over 1,100 workers. International Papers decision could cut North American production of print and office paper by seven percent, leaving Domtar as the largest company serving that market.
The Bank of America also changed their recommendation on Domtar to a buy. Shares of the stock jumped nearly 11 dollars on the day, with over 2.5 million shares traded.
Domtar Public Affairs Manager Craig Timm says the company has no comment on the International Papers plant closing, or how that may affect Domtar.